Which of the Following Is a Disadvantage When a Business

question 148

Multiple Choice

Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers?

• A) The business bears the responsibility of collecting cash from the customer.
• B) The business bears the risk of nonpayment by the customer.
• C) The business pays a processing fee.
• D) The business checks customers' credit ratings.

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Definitions:

Interest Tax Shield

The tax savings achieved by deducting payable interest on debt from taxable income, thereby reducing the overall tax expense.

Deductibility

Deductibility refers to the eligibility of an expense to be subtracted from gross income to reduce taxable income, under tax regulations.

Tax Savings

Reductions in tax payments achievable through various deductions, credits, or allowances.

Equity Risk

The risk of loss associated with fluctuations in the equity market, impacting the value of stocks and shareholders' investments.